S Corporation Tax Tips - How to Begin Preparing Form 1120S

If your business is an S-Corporation, you must file Form 1120s U.S. income tax return for an S-Corporation. The purpose of this article is to give you back the start of preparation for this. 1120s form is only four pages, but do not let it not deceive the length. If you make this statement for yourself, you will need help.

The easy part. You can start by using the name and address on the appropriate lines at the top of the page 1 Believe me, then things get a little more difficult.

The rest of the 1st top of page Now keep in mind that there are several information fields to the right and left of the name / address section. These fields, labeled with the letters A through I. Each of these fields is important, this article points A and B. gravity

Point A: S election date. This is the day that your company was the first time an S Corporation. After you set up this company, you should be filed with the IRS Form 2553, the Election by a Small Business Corporation. Suppose you gave this form correctly, would the IRS you have a letter entitled "Notice of Acceptance as an S-Corporation." In this letter, the IRS would have declared the effective date of your status as an S-Corporation. That is the date that you set in point A.

Here there is something to note: The S-Corporation may not be the same date as the date of incorporation. Here's why: You can use your company has started and will initially operate as a regular C Corporation for any number of years and then made the S Corporation election in another year as the year of incorporation.

But if you elected S Corporation status and included in the same year, then it is likely that the date of incorporation and date of the S Corporation election are the same. In any case, you should check your records to determine the correct date for the post, A.

Item B: activity code. The IRS has a chart of dozens of business and industry types. This chart can be found in the Form 1120s Instructions, pages 39 to 41 You can use these instructions from the IRS website. Look through the code and find the one, that best describes your company and make that 6-digit code in Article B.

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You can not claim this credit if you are also claimed the Hope Tax Credit in the same year for the same student (no double dipping). This credit phases in 2009, if your income is more than $ 100,000 (married) or $ 50,000 (single).

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This is another information online. It is a "yes or no" question: Was it a change in determining quantities, costs, or valuations between opening and closing inventory? My advice: always an answer to this question with a "No." As long as you remain consistent from year to year and over the value of your inventory at your expense, you can answer "No" and move on.